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Hi In this configration you will not get surround sound. Because tv is not able to reproduse the surround sound through its out put from the HDMI input. You have to connect the HDMI of PS3 to the Onkyo receiver and the HDMI Monitor Out of the Onkyo to the TV. This can only done if the Onkyo AVR Have HDMI IN/OUT option.

If not the connect the Optical out of PS3 to any one of the optical input of the Onkyo receiver. After that you have to goto the setup Menu the Onkyo and assing the optical input in wich you have conncted the PS3.

If your receiver has another digital audio input available to connect to, such as a coaxial or optical input, you can use either of those for the PS3. Another option is to use one of the composite audio inputs, but however, your surround mode for that type of input will not be Dolby Digital, DTS or any of the high definition surround sound formats. You will instead be able to get one of the Dolby ProLogic formats, or one of the various surround modes that are proprietary to the receiver model by it's digital signal processor...depending on which you choose.

You will need the optical cable. My receiver only passes video through the hdmi. So I hooked up the HDMI cable to the tv, and the optical cable to the receiver. Once that is done you have to go to the audio settings for the PS3 and chose audio through the optical.

The HTDDWG700 does not transfer the audio through the HDMI cable that the vision goes through. To solve the problem i got an optical cable and connected the PS3 to the receiver with the optical and put the HDMI cable from the PS3 to the tv.

I just finished setting up my system last night and was facing similar problems with sound/video from my PS3. The only option I could get working was to have the HDMI cable connected from the PS3 to the TV and then connect the Optical cable to the receiver for sound. I was under the impression that HDMI handles sound and video but for whatever reason the PS3 does not agree.

I have DTS sound and fantastic picture now through my PS3, hope this helps.